Peter L. Bernstein - Peter L. Bernstein Classics Collection: Capital Ideas, Against the Gods, The Power of Gold and Capital Ideas Evolving

Contents

Copyright 2012 by John Wiley & Sons. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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INTRODUCING WILEY INVESTMENT CLASSICS

There are certain books that have redefined the way we see the worlds of finance and investing - books that deserve a place on every investors shelf. Wiley InvestmentClassics will introduce you to these memorable books, which are just as relevant and vital today as when they were first published. Open a Wiley Investment Classic and rediscover the proven strategies, market philosophies, and definitive techniques that continue to stand the test of time.

Books in the series include:

PUBLISHERS NOTE

Peter Bernstein shaped and defined modern investment management. A successful investment manager, author of three bestselling books, and founder of The Journal of Portfolio Management , Peter perhaps understood and communicated more about investing than anyone of his generation.

We believe Peters books will stand the test of time and will serve to enlighten future generations of readers. To that end, we present this collection of Peters four most important books: Capital Ideas, Against the Gods , The Power of Gold, and Capital Ideas Evolving.

As Paul Volcker wrote in the foreword to The Power of Gold , Peter Bernstein was an anomaly in the modern world of investment, a man with a deep understanding of finance in all its up-to-date mathematical and theoretical manifestations, but also a student of history. His profound understanding of financial theory and financial historyalong with his gift of narrativeexplain the unique and enduring appeal of Peters books.

About the four books in this collection:

Capital Ideas , published in 1992, traces the development of modern finance theory from the theoretical work of academics to the real-world innovations of the practitioners on Wall Street. The sequel, Capital Ideas Evolving , published in 2007, chronicles the implementation of financial theory to practice after the 1990s, profiling institutions and individuals who led the way on Wall Street during that era.

Against the Gods explains how the concept of risk evolved through history, from ancient times to todays complex financial markets. Very much a history of ideas, the book describes the work of revolutionary thinkers John von Neumann, Isaac Newton, and Fischer Black, and many more. But Bernstein shows, despite the advances in thought, how irrationality still tends to dominate human decision- making in the face of uncertainty.

The Power of Gold explains the historical fascination of gold, its use as a monetary instrument, and how gold has shaped human history. Dismissed by John Maynard Keynes as a barbaric relic, Bernsteins explanation of how gold satisfies a yearning for solidity and stability hints that golds role in history might not quite yet be extinguished.

Peter Bernstein may well be the pre-eminent financial historian of our time. We hope this collection will provide readers with an appreciation of the depth and variety of Peters work and broaden their knowledge of the historical origins of modern finance.

FOREWORD

Those fortunate enough to own these volumes know that Peter Bernstein was a truly remarkable writer. Consider: Peter decided to write about the history of the mathematics of risk and uncertainty, its intellectual roots, and its implications for markets and for modern life. With that description, who could have predicted that Against the Gods would reside, for months , on multiple bestseller lists, all over the world? He chose to write about the intellectual foundations of neoclassical financial thought, and the pioneers who laid those foundations. The result? Another bestseller: Capital Ideas . He decidedas a Keynesian, no lessto write about the history of gold as a currency, as a store of value, as a safe haven, and as a means of displaying wealth. Yet another bestseller: The Power of Gold .